Bank Account for new graduate (with a job lined up!)

coffeel0ver

Hi there

I've been fortunate to be offered a full time graduate position starting Aug 2011. I graduate the month before!

Are certain bank accounts better to put my wages into?

I'm also considering keeping a savings account. I'm very keen to handle my money correctly from day one of my career & I'd love some advice.

I'm based in Northern Ireland

Thanks

T

Loanranger

Try reading this:
http://www.moneysavingexpert.com/banking/

coffeel0ver

Hi Loanranger

I have been reading this already, however I'd love some personal insights from the forum.

The main point raised in the graduate accounts page on MSE is to get an account with a high overdraft (if you're close to being debt free like me). As a result, you're earning interest on money the bank's lent you for free, giving potential profit.

Personally I'm slightly afraid of overdraft availability as so far, I've gotten by well without it (and avoided debt). I only spend what I earn and therefore I break even. I assume the benefit of this if I can keep track & ensure I don't go into overdraft in order to gain as a result.

Anybody have any personal insights?

Lokolo

To be honest, just find a bank you like and stick with it.

I have had my HSBC current account since I was 11, upgraded it to a student, its not a graudate account (although I'm not yet a graduate), and I will be using it still afterwards.

I don't see the point in going to look for a bank account if you already have one.

The only thing I would say is:

Halifax Reward pays £5 a month when you deposit £1k (they obviously want you to use their account, as a main account, and give you money for doing so)
Lloyds Vantage pays 4% on balances between £4/5-7k (cannot remember if it's £4k or £5k)

Both of these are current accounts.

opinions4u

If you're not planning on being overdrawn then look at Halifax Reward for current account.

The savings Market changes quite quickly but a good starting point would be an easy access ISA paying 3% or more.

jinkster

Couple sounds words of advice as you sounds like you know what you are doing with your money.

First of all:

Don't go to a bank that is desperate for your money - we'll give you a blah blah if you switch - you only need to look at the big Spanish bank and the complaints on here.

Secondly, some banks offer high rates of interest - they are also desperate for your money - let's face it, if you had lots of money it wouldn't be in the bank unless you were mad!

Lots of people praise First Direct (£1500 per month deposit to qualify).

Good luck and keep us posted!

ses6jwg

Although much vaunted on here by Martin et al., I would advise against the method of placing a large 0% overdraft into a savings account (i.e. "deficit banking/ saving").

The few pounds worth of interest you earn is, in my experience, not worth the damage to your credit worthiness, especially when you are just out of university and looking perhaps at loans, credit cards and eventually a mortgage.

Stuart_W

It sounds like you're going to be pretty careful with money, being wary of overdrafts and not wanting one is a positive outlook.

I would say go for a bank that looks like it will offer the best convenience for you.

IMHO, all the various "gimmicks" on some accounts are fairly small-fry in the whole scheme of things - high interest rates on current accounts often account for pennies each month, and can be deceptive anyway with various small print rules such as only on the first X amount in the account, or based on the lowest monthly balance. Some offers last for the first 12 months - on others cash sums are paid for opening the account.

Choose an account that lets you handle your money in the way you want to. Personally, I'd be lost without post office access (I'm with co-op) but plenty of people wouldn't give two hoots about it.

First Direct and Co-op/Smile often get high customer service ratings. Decide what is important to you and find the bank of best fit.

Annisele

Another vote for not borrowing at 0% and then lending at the highest rate you can find. That was fine in the days of "do you have a pulse? Great, here's a 125% mortgage", but it's not so great now.

I have my current account with First Direct, and I'd rate them very highly for service. They're not so great for savings rates - so my savings are elsewhere. I do have one of First Direct's regular savers, which pays 8% on a piddling tiny amount of money, but I wouldn't bother opening an account with them just for that.

I also have a credit card with Egg; I'm not too fussed about who my credit card provider is so long as they're not the same firm as my bank. If my bank decides that my spending is suspicious and stops my debit card, I want to still have access to cash.

For gimmicks, I'm one of the people that doesn't give two hoots about Post Office access. However, I do like the change counting machines in my local HSBC branch (which I can use as a First Direct customer). Stick my debit card into the machine, pour in my coins - no counting or bagging - and my account is credited. That's definitely my favourite of the gimmicks I've seen, but it might not be one you care about.

equitydealer

First Direct gets my vote, I've banked with a few and they win for me.

Hoping this does not sound like an ad but..

1) £100 for just switching
2) £250 free overdraft incase you sneak into the red, you won't get hit with any charges
3) 8% regular savings account
4) Best customer service - no Indian call centres and press 1, press 2 etc nonsense when you call them
5) Good online banking/technology platform - reliable faster payments (unlike the Halifax for example), nice additional features like banking on their iphone app if you have one
6) Access to HSBC branches for face to face banking if required

Need I say more!

jonesMUFCforever

What's wrong with your existing bank that gave you 0% finance whilst you were studying?